Half-yearly report
August 27 2010 - 2:00AM
UK Regulatory
TIDMICGC
HALF YEARLY FINANCIAL REPORT
FOR THE SIX MONTHS ENDED 30 JUNE 2010
+----------------------+---------------------------+----------+----------------+
| | Unaudited | | Audited |
+----------------------+---------------------------+----------+----------------+
| Financial Highlights | Six months to 30(th) June | Change % | Financial Year |
+----------------------+---------+-----------------+----------+----------------+
| | 2010 | 2009 | | 2009 |
+----------------------+---------+-----------------+----------+----------------+
| Revenue | EUR122.4m | EUR119.8m | +2.2% | EUR260.5m |
+----------------------+---------+-----------------+----------+----------------+
| EBITDA | EUR20.0m | EUR18.8m | +6.4% | EUR50.7m |
+----------------------+---------+-----------------+----------+----------------+
| Operating Profit | EUR8.8m | EUR7.1m | +23.9% | EUR26.5m |
+----------------------+---------+-----------------+----------+----------------+
| EPS Basic | 33.1c | 19.9c | +66.3% | 102.4c |
+----------------------+---------+-----------------+----------+----------------+
| EPS Adjusted | 34.3c | 22.3c | +53.8% | 107.7c |
+----------------------+---------+-----------------+----------+----------------+
| Net Debt | EUR26.9m | EUR48.5m | -44.5% | EUR21.7m |
+----------------------+---------+-----------------+----------+----------------+
Other Key Points
+--------------------------+-----------------+-----------------+--------+
| | 30(th) Jun 2010 | 30(th) Jun 2009 | % |
+--------------------------+-----------------+-----------------+--------+
| | 000 | 000 | |
+--------------------------+-----------------+-----------------+--------+
| Passengers | 695.7 | 621.1 | +12.0% |
+--------------------------+-----------------+-----------------+--------+
| Cars | 156.4 | 158.6 | -1.4% |
+--------------------------+-----------------+-----------------+--------+
| RoRo Freight | 86.6 | 99.1 | -12.6% |
+--------------------------+-----------------+-----------------+--------+
| Container Freight (teu.) | 204 | 187 | +9.1% |
+--------------------------+-----------------+-----------------+--------+
| Port Lifts | 82 | 78 | +5.1% |
+--------------------------+-----------------+-----------------+--------+
teu = twenty foot equivalent units
Comment
In a comment John B. McGuckian Chairman stated;
"A strong performance on the passenger side of our business has more than offset
continued difficult market conditions in the RoRo freight business. EBITDA,
operating profit, and EPS are all ahead of 2009 despite the continued difficult
economic backdrop. We remain cautious on the economic prospects for the second
half of the year but confident that we are well placed to compete successfully
in our market place".
27(th) August 2010
Enquiries: Eamonn Rothwell Tel: +353-1-607 5628
Garry O'Dea Tel: +353-1-607 5628
Email: info@icg.ie
Website: www.icg.ie
INTERIM MANAGEMENT REPORT
FOR THE SIX MONTHS TO 30 JUNE 2010
RESULTS
The Board of Irish Continental Group plc (ICG) reports that, in the seasonally
less profitable first half of the year, the Group recorded revenue of EUR122.4
million compared with EUR119.8 million in the same period in 2009, an increase of
2.2%. Earnings before interest tax and depreciation (EBITDA) were EUR20.0 million
compared with EUR18.8 million in the same period in 2009, an increase of 6.4%
despite a 48% increase in fuel costs to EUR20.1 million. Operating profit was up
23.9% to EUR8.8 million compared with EUR7.1 million in 2009. There was a net
finance charge of EUR0.5 million which includes a net pension interest charge of
EUR0.3 million and net bank interest of EUR0.2 million. Profit before tax was EUR8.3
million compared with EUR5.8 million in the first half of 2009. The tax charge
amounted to EUR0.1 million (2009: EUR0.9 million). Basic EPS was 33.1c compared
with 19.9c in the first half of 2009. Adjusted EPS (i.e. before the net pension
interest charge) amounted to 34.3c (22.3c in 2009).
OPERATIONAL REVIEW
Ferries Division
The division comprises Irish Ferries, a leading provider of passenger and
freight ferry services between Ireland and both the UK and Continental Europe,
and the bareboat chartering of multipurpose ferries to third parties. Irish
Ferries operated 2,187 sailings in the period, up 6% on 2009 (although there
were 32 fewer sailings to France after the winter refit offset by 152 additional
sailings to and from the UK).
Revenue in the division was EUR68.0 million (2009: EUR65.5 million) with an increase
in passenger revenue and a decrease in freight revenue. Profit from operations
was EUR6.5 million (2009: EUR3.9 million).
Irish Ferries' passenger business is focused on passengers travelling with their
own cars. Total passengers carried were up 12.0% at 695,700 while total cars
carried in the first half of 2010 were 156,400, down 1.4% on the previous year,
but at higher yields due partly to a stronger sterling. We were pleased with
the passenger performance in the six months which was helped during April and
May by the closure of European airspace. Our combination of cruise and fast
ferry options on the short sea routes between Ireland and the UK is proving very
resilient in the market place as is our high quality cruise ferry service to
France.
In RoRo freight Irish Ferries' volumes were down 12.6% to 86,600 units, when
compared with the first half of 2009, reflecting continued weakness in the Irish
economy as well as a surplus of ship capacity in the market place.
Two vessels within the Group, the MV Pride of Bilbao and MV Kaitaki, remained on
charter to P&O during the period, one trading UK - Spain and the second trading
in New Zealand.
Container and Terminal Division
The Container and Terminal Division includes the shipping lines Eucon and
Feederlink as well as the division's strategically located container terminals
in Dublin (DFT) and Belfast (BCT).
Turnover in the division was unchanged at EUR54.4 million (2009: EUR54.3 million),
while profit from operations was EUR2.3 million (2009: EUR3.2 million). The
reduction in operating profit is due to restructuring costs in our terminal in
Dublin (DFT).
Total containers shipped were up 9% at 204,000 teu., while the number of units
lifted at the division's port facilities in Dublin and Belfast were up 5% at
82,000 lifts. The market is characterised by a weak rate environment as a
result of which we have decided to forego some traffic flows because of the
inadequate rates on offer. This will result in weaker volume trends in the
second half of the year. With our flexible chartered fleet we will be able to
adjust capacity to the volume of trade we accept. We have also reduced shore
side costs in DFT to reflect the market realities by reducing staffing numbers
and contracting out certain functions.
FINANCE / DEBT
EBITDA for the period was EUR20.0 million compared with EUR18.8 million in the same
period in 2009. Operating cash flow was EUR16.8 million versus EUR18.1 million in
2009. Capital expenditure in the period was EUR4.6 million (2009: EUR4.3 million).
During the period we paid a dividend of EUR1.00 per share, a total of EUR25.0
million (In 2009 EUR24.6 million redeemable shares were redeemed for a
consideration of EUR1.00 a share. No dividend was paid).
Net debt at the end of the period amounted to EUR26.9 million. This compares with
EUR21.7 million at 31 December 2009 and reflects the payment of the dividend
offset to a large degree by the strong operating cash flow.
There was an increase in the net retirement benefit obligation to EUR45.8 million
from EUR27.2 million due mainly to a reduction in corporate bond yields (which are
used to value pension liabilities) to a range of 5.2%/5.3% compared with
5.6%/5.7% in December 2009. In common with most employers with defined benefit
schemes discussions are ongoing with the Trustees of the schemes regarding the
filing of recovery plans with the relevant regulatory authorities.
PRINCIPAL RISKS AND UNCERTAINTIES
The Group has a risk management structure in place which is designed to
identify, manage and mitigate the threats to the business. The key risks facing
the Group in the six months to 31 December 2010 include operational risks such
as risks to safety and business continuity, commercial and market risks due to
reduced demand for passenger and freight services combined with the risk of
increased supply of shipping capacity due to the mobility of assets, and
financial and commodity risks arising from the current financial and economic
environment.
* Safety and Business Continuity
The Group is dependent on the safe operation of its vessels. There is a risk
that any of the Group's vessels could be involved in an incident which could
cause loss of life and cargo and cause significant interruption to the Group's
business. In mitigation, the Group carries insurance in respect of passenger,
cargo and third party liabilities, but does not carry insurance for business
interruption due to the cost involved relative to the insurable benefits. The
operation of vessels of the type listed by the Group is subject to significant
regulatory oversight by flag state, port state and other regulatory authorities
whose requirements can change from time to time. The business of the Group is
also exposed to the risk of interruption from incidents such as mechanical
failure or other loss of critical port installations or vessels or from labour
disputes either within the Group or in key suppliers, for example ports or fuel
suppliers, or from a loss of significant IT systems.
* Commercial and Market Risk
The passenger market is subject to the current challenging economic conditions,
the propensity of consumers to spend and travel and to the competitive threat
from short-haul and regional airlines.
The freight market is subject to general economic conditions and in particular
the reduced level of international trade in North West Europe. Given the mobile
nature of ships there is also the risk of additional capacity arising in any of
the Group's trading areas at relatively short notice. The Group has commercial
arrangements with freight customers and the Group is exposed to the risk of loss
of such customers.
* Financial and Commodity Risks
In the light of the challenges arising in financial markets there is a higher
degree of financial risk in the business. Specific risks include higher risk of
default by debtors, reduced availability of credit insurance and potentially
reduced availability, and higher cost, of financing. Other financial risks
include the risks to the Group's defined benefit pension schemes from changes in
interest and inflation rates, longevity, and changes in the market value of
investments. In addition to normal risks attributable to the Group's defined
benefit pension schemes, the Group is exposed to risk attributable to its
membership of the multi-employer scheme, the Merchant Navy Officer Pension Fund
(MNOPF). The rules of the scheme provide for joint and several liability for
employers for the obligations of the scheme which has a deficit of approximately
GBP700 million sterling. This means the Group is exposed, with other performing
employers, to a pro rata share of the obligations of any employers who default
on their obligations. The Group is also exposed to the risk of a discontinuance
basis debt arising (a "S 75 debt") if it ceases participation in the MNOPF. This
would be a larger sum than the ongoing deficit share and represents a contingent
liability.
The Group entered into a Revolving Credit Facility Agreement in August 2010
which provides committed bank facilities amounting to EUR60.0 million, with an
expiry date of August 2013. The Group also has an overdraft facility amounting
to EUR6.0 million, subject to annual review.
In terms of commodity price risk the Group's vessels consume heavy fuel oil
(HFO), marine diesel gas oil (MDO/MGO) and lubricating oils, all of which
continue to be subject to price volatility. It is the Group's policy to purchase
these commodities in the spot markets and to remain unhedged.
RELATED PARTY TRANSACTIONS
There were no related party transactions in the half year that have materially
affected the financial position or performance of the Group in the period. In
addition, there were no changes in related party transactions from the last
annual report that could have a material effect on the financial position or
performance of the Group in the first six months.
GOING CONCERN
After making enquiries and taking into account the Group's committed banking
facilities which extend to August 2013, the directors believe that the Group has
adequate resources to continue in operational existence for the foreseeable
future. In forming this view the Directors have considered the future cash
requirements of the Group's business in the context of the economic environment
over the next 12 months, the principal risks and uncertainties facing the Group,
the Group's budget plan and the medium term strategy of the Group, including
capital investment plans. The future cash requirements have been compared to
bank facilities which the Directors have negotiated. For this reason, they
continue to adopt the going concern basis in preparing this half yearly
financial report.
AUDITOR REVIEW
This half yearly financial report has not been audited or reviewed by the
auditors of the Group pursuant to the Auditing Practices Board guidance on
Review of Interim Financial Information.
CURRENT TRADING
July and August trading in the Ferries Division follows the pattern of the first
half with increased passenger and car carryings (up 9% and 4% respectively) and
positive yields offset by reduced RoRo freight (down 7%). In the Container and
Terminal division our volumes have increased by 3% but with continued rate
pressures.
FORWARD LOOKING STATEMENTS
This report contains certain forward-looking statements and these statements are
made by the Directors in good faith based on the information available to them
up to the time of their approval of this report and those statements should be
treated with caution due to the inherent uncertainties, including both economic
and business risk factors, underlying any such forward looking information.
This report has been prepared for the Group as a whole and therefore gives
greater emphasis to those matters which are significant to Irish Continental
Group plc and its subsidiaries when viewed as a whole.
Website
This half yearly financial report and Interim Management Report are available on
the Group's websitewww.icg.ie.
John B. McGuckian
Chairman
27(th) August 2010
INVESTOR PRESENTATION
The Company will make a presentation of the results to investors. The
presentation will be held at the offices of NCB Stockbrokers at 3 George's Dock,
IFSC, Dublin 1 at 8.00 a.m. on 27(th) August 2010. In addition, a dial-in
facility will be available. Attendance at the presentation and dial-in will be
strictly limited to investors who register in advance to attend. To register to
attend the presentation, either in person or via the dial-in facility, investors
should contact NCB Stockbrokers at +353 (0)1 611 5943. A copy of the
presentation will also be posted on the Company's web-site, www.icg.ie
RESPONSIBILITY STATEMENT
The Directors are responsible for preparing the Half Yearly Financial Report in
accordance with the Transparency (Directive 2004/109/EC) Regulations 2007, the
related Transparency Rules of the Irish Financial Services Regulatory Authority
and with IAS 34, Interim Financial Reporting as adopted by the European Union.
The Directors confirm that, to the best of their knowledge:
* the Group Condensed Financial Statements for the half year ended 30 June
2010 have been prepared in accordance with the International Accounting
Standard applicable to interim financial reporting (IAS 34 Interim Financial
Reporting) adopted pursuant to the procedure provided for under Article 6 of
the Regulation (EC) No. 1606/2002 of the European Parliament and the Council
of 19 July 2002;
* the Interim Management Report includes a fair review of the important events
that have occurred during the first six months of the financial year, their
impact on the Group Condensed Financial Statements for the half year ended
30 June 2010, and a description of the principal risks and uncertainties for
the remaining six months;
* the Interim Management Report includes a fair review of related party
transactions that have occurred during the first six months of the current
financial year and that have materially affected the financial position or
the performance of the Group during that period, and any changes in the
related parties transactions described in the last Annual Report that could
have a material effect on the financial position or performance of the Group
in the first six months of the current financial year.
Eamonn Rothwell Chief Executive Officer
Garry O'Dea Finance Director
27(th) August 2010
CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2010
+-------------------------------------+-----+---------+---------+-------+
| | |Unaudited|Unaudited|Audited|
+-------------------------------------+-----+---------+---------+-------+
| | | 30 Jun | 30 Jun |31 Dec |
+-------------------------------------+-----+---------+---------+-------+
| | | 2010 | 2009 | 2009 |
+-------------------------------------+-----+---------+---------+-------+
| |Notes| EURm| EURm| EURm|
+-------------------------------------+-----+---------+---------+-------+
| | | | | |
+-------------------------------------+-----+---------+---------+-------+
|Continuing operations | | | | |
+-------------------------------------+-----+---------+---------+-------+
|Revenue | | 122.4| 119.8| 260.5|
+-------------------------------------+-----+---------+---------+-------+
| | | | | |
+-------------------------------------+-----+---------+---------+-------+
|Depreciation and amortisation | | (11.2)| (11.7)| (24.2)|
+-------------------------------------+-----+---------+---------+-------+
|Employee benefits expense | | (11.2)| (12.2)| (25.3)|
+-------------------------------------+-----+---------+---------+-------+
|Other operating expenses | | (91.2)| (88.8)|(184.5)|
+-------------------------------------+-----+---------+---------+-------+
| | | | | |
+-------------------------------------+-----+---------+---------+-------+
|Operating profit | | 8.8| 7.1| 26.5|
+-------------------------------------+-----+---------+---------+-------+
| | | | | |
+-------------------------------------+-----+---------+---------+-------+
|Investment revenue | | 6.7| 6.2| 13.4|
+-------------------------------------+-----+---------+---------+-------+
|Finance costs | | (7.2)| (7.5)| (15.0)|
+-------------------------------------+-----+---------+---------+-------+
| | | | | |
+-------------------------------------+-----+---------+---------+-------+
|Profit before taxation | | 8.3| 5.8| 24.9|
+-------------------------------------+-----+---------+---------+-------+
| | | | | |
+-------------------------------------+-----+---------+---------+-------+
|Income tax (expense) / credit | | (0.1)| (0.9)| 0.3|
+-------------------------------------+-----+---------+---------+-------+
| | | | | |
+-------------------------------------+-----+---------+---------+-------+
|Profit for the period: all | | | | |
+-------------------------------------+-----+---------+---------+-------+
|attributable to equity holders of the| | | | |
+-------------------------------------+-----+---------+---------+-------+
|parent | | 8.2| 4.9| 25.2|
+-------------------------------------+-----+---------+---------+-------+
| | | | | |
+-------------------------------------+-----+---------+---------+-------+
| | | | | |
+-------------------------------------+-----+---------+---------+-------+
|Earnings per ordinary share (cent) | | | | |
+-------------------------------------+-----+---------+---------+-------+
| | | | | |
+-------------------------------------+-----+---------+---------+-------+
| | | | | |
+-------------------------------------+-----+---------+---------+-------+
|All from continuing operations | | | | |
+-------------------------------------+-----+---------+---------+-------+
|-basic | 5 | 33.1| 19.9| 102.4|
+-------------------------------------+-----+---------+---------+-------+
|-diluted | 5 | 32.9| 19.7| 101.5|
+-------------------------------------+-----+---------+---------+-------+
| | | | | |
+-------------------------------------+-----+---------+---------+-------+
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2010
+--------------------------------------------+-----+---------+---------+-------+
| | |Unaudited|Unaudited|Audited|
+--------------------------------------------+-----+---------+---------+-------+
| | | 30 Jun | 30 Jun |31 Dec |
+--------------------------------------------+-----+---------+---------+-------+
| | | 2010 | 2009 | 2009 |
+--------------------------------------------+-----+---------+---------+-------+
| |Notes| EURm| EURm| EURm|
+--------------------------------------------+-----+---------+---------+-------+
| | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Profit for the period | | 8.2| 4.9| 25.2|
+--------------------------------------------+-----+---------+---------+-------+
| | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Cash flow hedges: | | | | |
+--------------------------------------------+-----+---------+---------+-------+
| | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Fair value profit / (loss) arising during | | -| 0.2| (0.2)|
|the period | | | | |
+--------------------------------------------+-----+---------+---------+-------+
| | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Transfer to Consolidated Income Statement - | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|net settlement of cash flow hedged | | -| -| 0.9|
+--------------------------------------------+-----+---------+---------+-------+
| | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Exchange differences on translation of | | | | |
|foreign | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|operations | | 8.2| 9.6| 5.6|
+--------------------------------------------+-----+---------+---------+-------+
| | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Actuarial loss on retirement benefit | 10 | (21.9)| (4.8)| (6.0)|
|obligations | | | | |
+--------------------------------------------+-----+---------+---------+-------+
| | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Deferred Tax movements | | (0.4)| (0.2)| (0.3)|
+--------------------------------------------+-----+---------+---------+-------+
| | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Exchange difference on defined benefit | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|schemes | | -| (0.3)| (0.9)|
+--------------------------------------------+-----+---------+---------+-------+
| | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Other comprehensive (expense) / | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|income for the period | | (14.1)| 4.5| (0.9)|
+--------------------------------------------+-----+---------+---------+-------+
| | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Total comprehensive (expense) / | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|income for the period: all attributable to | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|equity holders of the parent | | (5.9)| 9.4| 24.3|
+--------------------------------------------+-----+---------+---------+-------+
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2010
+-------------------------------------+-----+---------+---------+-------+
| | |Unaudited|Unaudited|Audited|
+-------------------------------------+-----+---------+---------+-------+
| | | 30 Jun | 30 Jun |31 Dec |
+-------------------------------------+-----+---------+---------+-------+
| | | 2010 | 2009 | 2009 |
+-------------------------------------+-----+---------+---------+-------+
| |Notes| EURm| EURm| EURm|
+-------------------------------------+-----+---------+---------+-------+
|Assets | | | | |
+-------------------------------------+-----+---------+---------+-------+
| | | | | |
+-------------------------------------+-----+---------+---------+-------+
|Non-current assets | | | | |
+-------------------------------------+-----+---------+---------+-------+
|Property, plant and equipment | 6 | 226.8| 239.0| 223.2|
+-------------------------------------+-----+---------+---------+-------+
|Intangible assets | 7 | 1.0| 1.5| 1.1|
+-------------------------------------+-----+---------+---------+-------+
|Long term receivable | | -| 3.2| -|
+-------------------------------------+-----+---------+---------+-------+
|Retirement benefit surplus | 10 | 1.4| 3.2| 2.4|
+-------------------------------------+-----+---------+---------+-------+
| | | 229.2| 246.9| 226.7|
+-------------------------------------+-----+---------+---------+-------+
| | | | | |
+-------------------------------------+-----+---------+---------+-------+
|Current assets | | | | |
+-------------------------------------+-----+---------+---------+-------+
|Inventories | | 2.7| 0.9| 2.0|
+-------------------------------------+-----+---------+---------+-------+
|Trade and other receivables | | 32.1| 34.3| 28.2|
+-------------------------------------+-----+---------+---------+-------+
|Cash and cash equivalents | | 17.5| 35.4| 17.0|
+-------------------------------------+-----+---------+---------+-------+
| | | 52.3| 70.6| 47.2|
+-------------------------------------+-----+---------+---------+-------+
| | | | | |
+-------------------------------------+-----+---------+---------+-------+
|Total assets | | 281.5| 317.5| 273.9|
+-------------------------------------+-----+---------+---------+-------+
| | | | | |
+-------------------------------------+-----+---------+---------+-------+
|Equity and liabilities | | | | |
+-------------------------------------+-----+---------+---------+-------+
| | | | | |
+-------------------------------------+-----+---------+---------+-------+
|Equity | | | | |
+-------------------------------------+-----+---------+---------+-------+
| | | | | |
+-------------------------------------+-----+---------+---------+-------+
|Share capital | | 16.8| 16.6| 16.6|
+-------------------------------------+-----+---------+---------+-------+
|Share premium | | 51.8| 48.7| 48.7|
+-------------------------------------+-----+---------+---------+-------+
|Other reserves | | (15.6)| (20.6)| (23.9)|
+-------------------------------------+-----+---------+---------+-------+
|Retained earnings | | 71.8| 92.5| 110.9|
+-------------------------------------+-----+---------+---------+-------+
|Equity attributable to equity holders| | 124.8| 137.2| 152.3|
+-------------------------------------+-----+---------+---------+-------+
| | | | | |
+-------------------------------------+-----+---------+---------+-------+
|Non-current liabilities | | | | |
+-------------------------------------+-----+---------+---------+-------+
|Borrowings | | 2.7| 66.5| 0.9|
+-------------------------------------+-----+---------+---------+-------+
|Deferred tax liabilities | | 4.1| 3.4| 3.4|
+-------------------------------------+-----+---------+---------+-------+
|Provisions | | 0.5| 0.3| 0.5|
+-------------------------------------+-----+---------+---------+-------+
|Deferred grant | | 1.0| 1.1| 1.1|
+-------------------------------------+-----+---------+---------+-------+
|Retirement benefit obligation | 10 | 47.2| 32.6| 29.6|
+-------------------------------------+-----+---------+---------+-------+
| | | 55.5| 103.9| 35.5|
+-------------------------------------+-----+---------+---------+-------+
| | | | | |
+-------------------------------------+-----+---------+---------+-------+
|Current liabilities | | | | |
+-------------------------------------+-----+---------+---------+-------+
|Borrowings | | 41.7| 17.4| 37.8|
+-------------------------------------+-----+---------+---------+-------+
|Derivative financial instruments | | -| 0.5| -|
+-------------------------------------+-----+---------+---------+-------+
|Trade and other payables | | 56.5| 55.2| 44.1|
+-------------------------------------+-----+---------+---------+-------+
|Current tax liabilities | | 2.4| 2.9| 3.6|
+-------------------------------------+-----+---------+---------+-------+
|Provisions | | 0.5| 0.3| 0.5|
+-------------------------------------+-----+---------+---------+-------+
|Deferred grant | | 0.1| 0.1| 0.1|
+-------------------------------------+-----+---------+---------+-------+
| | | 101.2| 76.4| 86.1|
+-------------------------------------+-----+---------+---------+-------+
| | | | | |
+-------------------------------------+-----+---------+---------+-------+
|Total liabilities | | 156.7| 180.3| 121.6|
+-------------------------------------+-----+---------+---------+-------+
| | | | | |
+-------------------------------------+-----+---------+---------+-------+
|Total equity and liabilities | | 281.5| 317.5| 273.9|
+-------------------------------------+-----+---------+---------+-------+
| | | | | |
+-------------------------------------+-----+---------+---------+-------+
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2010
+------------------------------+-------+-------+--------+--------+------+
| | | | | | |
+------------------------------+-------+-------+--------+--------+------+
| | Share | Share | Other |Retained| |
+------------------------------+-------+-------+--------+--------+------+
| |Capital|Premium|Reserves|Earnings|Total |
+------------------------------+-------+-------+--------+--------+------+
| | EURm | EURm | EURm | EURm | EURm |
+------------------------------+-------+-------+--------+--------+------+
| | | | | | |
+------------------------------+-------+-------+--------+--------+------+
|Balance at 1 January 2010 | 16.6| 48.7| (23.9)| 110.9| 152.3|
+------------------------------+-------+-------+--------+--------+------+
| | | | | | |
+------------------------------+-------+-------+--------+--------+------+
|Profit for the period | -| -| -| 8.2| 8.2|
+------------------------------+-------+-------+--------+--------+------+
|Other comprehensive income | -| -| 8.2| (22.3)|(14.1)|
+------------------------------+-------+-------+--------+--------+------+
| | | | | | |
+------------------------------+-------+-------+--------+--------+------+
|Total comprehensive income | | | | | |
+------------------------------+-------+-------+--------+--------+------+
|for the period | -| -| 8.2| (14.1)| (5.9)|
+------------------------------+-------+-------+--------+--------+------+
| | | | | | |
+------------------------------+-------+-------+--------+--------+------+
|Share issue | 0.2| -| -| -| 0.2|
+------------------------------+-------+-------+--------+--------+------+
|Exercise of share options - | | | | | |
+------------------------------+-------+-------+--------+--------+------+
|Shares issued at premium | -| 3.1| -| -| 3.1|
+------------------------------+-------+-------+--------+--------+------+
|Employee share options expense| -| -| 0.1| -| 0.1|
+------------------------------+-------+-------+--------+--------+------+
|Dividend payment (note 4) | -| -| -| (25.0)|(25.0)|
+------------------------------+-------+-------+--------+--------+------+
| | | | | | |
+------------------------------+-------+-------+--------+--------+------+
| | 0.2| 3.1| 8.3| (39.1)|(27.5)|
+------------------------------+-------+-------+--------+--------+------+
| | | | | | |
+------------------------------+-------+-------+--------+--------+------+
|Balance at 30 June 2010 | 16.8| 51.8| (15.6)| 71.8| 124.8|
+------------------------------+-------+-------+--------+--------+------+
| | | | | | |
+------------------------------+-------+-------+--------+--------+------+
|Analysed as follows: | | | | | |
+------------------------------+-------+-------+--------+--------+------+
|Share capital | | | | | 16.8|
+------------------------------+-------+-------+--------+--------+------+
|Share premium | | | | | 51.8|
+------------------------------+-------+-------+--------+--------+------+
|Other reserves | | | | |(15.6)|
+------------------------------+-------+-------+--------+--------+------+
|Retained earnings | | | | | 71.8|
+------------------------------+-------+-------+--------+--------+------+
| | | | | | 124.8|
+------------------------------+-------+-------+--------+--------+------+
Other Reserves comprise the following:
+----------------------------+---------+---------+-------------+--------+
| | | Share | | |
+----------------------------+---------+---------+-------------+--------+
| | Capital | Options | Translation | |
+----------------------------+---------+---------+-------------+--------+
| | Reserve | Reserve | Reserve | Total |
+----------------------------+---------+---------+-------------+--------+
| | EURm | EURm | EURm | EURm |
+----------------------------+---------+---------+-------------+--------+
| | | | | |
+----------------------------+---------+---------+-------------+--------+
| Balance at 1 January 2010 | 2.2 | 1.9 | (28.0) | (23.9) |
+----------------------------+---------+---------+-------------+--------+
| | | | | |
+----------------------------+---------+---------+-------------+--------+
| Other comprehensive income | - | - | 8.2 | 8.2 |
+----------------------------+---------+---------+-------------+--------+
| | | | | |
+----------------------------+---------+---------+-------------+--------+
| Total comprehensive | | | | |
+----------------------------+---------+---------+-------------+--------+
| income for the period | - | - | 8.2 | 8.2 |
+----------------------------+---------+---------+-------------+--------+
| | | | | |
+----------------------------+---------+---------+-------------+--------+
| Employee share options | | | | |
+----------------------------+---------+---------+-------------+--------+
| expense | - | 0.1 | - | 0.1 |
+----------------------------+---------+---------+-------------+--------+
| | | | | |
+----------------------------+---------+---------+-------------+--------+
| | - | 0.1 | 8.2 | 8.3 |
+----------------------------+---------+---------+-------------+--------+
| | | | | |
+----------------------------+---------+---------+-------------+--------+
| Balance at 30 June 2010 | 2.2 | 2.0 | (19.8) | (15.6) |
+----------------------------+---------+---------+-------------+--------+
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2009
+-------------------------------------+-------+-------+--------+--------+------+
| | | | | | |
+-------------------------------------+-------+-------+--------+--------+------+
| | Share | Share | Other |Retained| |
+-------------------------------------+-------+-------+--------+--------+------+
| |Capital|Premium|Reserves|Earnings|Total |
+-------------------------------------+-------+-------+--------+--------+------+
| | EURm | EURm | EURm | EURm | EURm |
+-------------------------------------+-------+-------+--------+--------+------+
| | | | | | |
+-------------------------------------+-------+-------+--------+--------+------+
|Balance at 1 January 2009 | 16.6| 48.7| (30.6)| 117.5| 152.2|
+-------------------------------------+-------+-------+--------+--------+------+
| | | | | | |
+-------------------------------------+-------+-------+--------+--------+------+
|Profit for the period | -| -| -| 4.9| 4.9|
+-------------------------------------+-------+-------+--------+--------+------+
|Other comprehensive income | -| -| 9.8| (5.3)| 4.5|
+-------------------------------------+-------+-------+--------+--------+------+
| | | | | | |
+-------------------------------------+-------+-------+--------+--------+------+
|Total comprehensive income | | | | | |
+-------------------------------------+-------+-------+--------+--------+------+
|for the period | -| -| 9.8| (0.4)| 9.4|
+-------------------------------------+-------+-------+--------+--------+------+
| | | | | | |
+-------------------------------------+-------+-------+--------+--------+------+
|Redemption of redeemable share | | | | | |
|capital (note 4) | -| -| -| (24.6)|(24.6)|
+-------------------------------------+-------+-------+--------+--------+------+
|Employee share options expense | -| -| 0.2| -| 0.2|
+-------------------------------------+-------+-------+--------+--------+------+
| | | | | | |
+-------------------------------------+-------+-------+--------+--------+------+
| | -| -| 10.0| (25.0)|(15.0)|
+-------------------------------------+-------+-------+--------+--------+------+
| | | | | | |
+-------------------------------------+-------+-------+--------+--------+------+
|Balance at 30 June 2009 | 16.6| 48.7| (20.6)| 92.5| 137.2|
+-------------------------------------+-------+-------+--------+--------+------+
| | | | | | |
+-------------------------------------+-------+-------+--------+--------+------+
|Analysed as follows: | | | | | |
+-------------------------------------+-------+-------+--------+--------+------+
|Share capital | | | | | 16.6|
+-------------------------------------+-------+-------+--------+--------+------+
|Share premium | | | | | 48.7|
+-------------------------------------+-------+-------+--------+--------+------+
|Other reserves | | | | |(20.6)|
+-------------------------------------+-------+-------+--------+--------+------+
|Retained earnings | | | | | 92.5|
+-------------------------------------+-------+-------+--------+--------+------+
| | | | | | 137.2|
+-------------------------------------+-------+-------+--------+--------+------+
Other Reserves comprise the following:
+--------------------------+-------+-------+-------+-----------+------+
| | | Share | | | |
+--------------------------+-------+-------+-------+-----------+------+
| |Capital|Options|Hedging|Translation| |
+--------------------------+-------+-------+-------+-----------+------+
| |Reserve|Reserve|Reserve| Reserve |Total |
+--------------------------+-------+-------+-------+-----------+------+
| | EURm| EURm| EURm| EURm| EURm|
+--------------------------+-------+-------+-------+-----------+------+
| | | | | | |
+--------------------------+-------+-------+-------+-----------+------+
|Balance at 1 January 2009 | 2.2| 1.5| (0.7)| (33.6)|(30.6)|
+--------------------------+-------+-------+-------+-----------+------+
| | | | | | |
+--------------------------+-------+-------+-------+-----------+------+
|Other comprehensive income| -| -| 0.2| 9.6| 9.8|
+--------------------------+-------+-------+-------+-----------+------+
| | | | | | |
+--------------------------+-------+-------+-------+-----------+------+
|Total comprehensive | | | | | |
+--------------------------+-------+-------+-------+-----------+------+
|income for the period | -| -| 0.2| 9.6| 9.8|
+--------------------------+-------+-------+-------+-----------+------+
| | | | | | |
+--------------------------+-------+-------+-------+-----------+------+
|Employee share options | | | | | |
+--------------------------+-------+-------+-------+-----------+------+
|expense | -| 0.2| -| -| 0.2|
+--------------------------+-------+-------+-------+-----------+------+
| | | | | | |
+--------------------------+-------+-------+-------+-----------+------+
| | -| 0.2| 0.2| 9.6| 10.0|
+--------------------------+-------+-------+-------+-----------+------+
| | | | | | |
+--------------------------+-------+-------+-------+-----------+------+
|Balance at 30 June 2010 | 2.2| 1.7| (0.5)| (24.0)|(20.6)|
+--------------------------+-------+-------+-------+-----------+------+
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2009
+------------------------------+-------+-------+--------+--------+------+
| | | | | | |
+------------------------------+-------+-------+--------+--------+------+
| | Share | Share | Other |Retained| |
+------------------------------+-------+-------+--------+--------+------+
| |Capital|Premium|Reserves|Earnings|Total |
+------------------------------+-------+-------+--------+--------+------+
| | EURm | EURm | EURm | EURm | EURm |
+------------------------------+-------+-------+--------+--------+------+
| | | | | | |
+------------------------------+-------+-------+--------+--------+------+
|Balance at 1 January 2009 | 16.6| 48.7| (30.6)| 117.5| 152.2|
+------------------------------+-------+-------+--------+--------+------+
| | | | | | |
+------------------------------+-------+-------+--------+--------+------+
|Profit for the year | -| -| -| 25.2| 25.2|
+------------------------------+-------+-------+--------+--------+------+
|Other comprehensive income | -| -| 6.3| (7.2)| (0.9)|
+------------------------------+-------+-------+--------+--------+------+
| | | | | | |
+------------------------------+-------+-------+--------+--------+------+
|Total comprehensive income | | | | | |
+------------------------------+-------+-------+--------+--------+------+
|for the year | -| -| 6.3| 18.0| 24.3|
+------------------------------+-------+-------+--------+--------+------+
| | | | | | |
+------------------------------+-------+-------+--------+--------+------+
|Employee share options expense| -| -| 0.4| -| 0.4|
+------------------------------+-------+-------+--------+--------+------+
|Redemption of redeemable | | | | | |
+------------------------------+-------+-------+--------+--------+------+
|share capital (note 4) | -| -| -| (24.6)|(24.6)|
+------------------------------+-------+-------+--------+--------+------+
| | | | | | |
+------------------------------+-------+-------+--------+--------+------+
| | | | | | |
+------------------------------+-------+-------+--------+--------+------+
| | -| -| 6.7| (6.6)| 0.1|
+------------------------------+-------+-------+--------+--------+------+
| | | | | | |
+------------------------------+-------+-------+--------+--------+------+
|Balance at 31 December 2009 | 16.6| 48.7| (23.9)| 110.9| 152.3|
+------------------------------+-------+-------+--------+--------+------+
| | | | | | |
+------------------------------+-------+-------+--------+--------+------+
|Analysed as follows: | | | | | |
+------------------------------+-------+-------+--------+--------+------+
|Share capital | | | | | 16.6|
+------------------------------+-------+-------+--------+--------+------+
|Share premium | | | | | 48.7|
+------------------------------+-------+-------+--------+--------+------+
|Other reserves | | | | |(23.9)|
+------------------------------+-------+-------+--------+--------+------+
|Retained earnings | | | | | 110.9|
+------------------------------+-------+-------+--------+--------+------+
| | | | | | 152.3|
+------------------------------+-------+-------+--------+--------+------+
Other Reserves comprise the following:
+------------------------------+-------+-------+-------+-----------+------+
| | | Share | | | |
+------------------------------+-------+-------+-------+-----------+------+
| |Capital|Options|Hedging|Translation| |
+------------------------------+-------+-------+-------+-----------+------+
| |Reserve|Reserve|Reserve| Reserve |Total |
+------------------------------+-------+-------+-------+-----------+------+
| | EURm| EURm| EURm| EURm| EURm|
+------------------------------+-------+-------+-------+-----------+------+
| | | | | | |
+------------------------------+-------+-------+-------+-----------+------+
|Balance at 1 January 2009 | 2.2| 1.5| (0.7)| (33.6)|(30.6)|
+------------------------------+-------+-------+-------+-----------+------+
| | | | | | |
+------------------------------+-------+-------+-------+-----------+------+
|Other comprehensive income | -| -| 0.7| 5.6| 6.3|
+------------------------------+-------+-------+-------+-----------+------+
| | | | | | |
+------------------------------+-------+-------+-------+-----------+------+
|Total comprehensive | | | | | |
+------------------------------+-------+-------+-------+-----------+------+
|income for the year | -| -| 0.7| 5.6| 6.3|
+------------------------------+-------+-------+-------+-----------+------+
| | | | | | |
+------------------------------+-------+-------+-------+-----------+------+
|Employee share options expense| -| 0.4| -| -| 0.4|
+------------------------------+-------+-------+-------+-----------+------+
| | | | | | |
+------------------------------+-------+-------+-------+-----------+------+
| | -| 0.4| 0.7| 5.6| 6.7|
+------------------------------+-------+-------+-------+-----------+------+
| | | | | | |
+------------------------------+-------+-------+-------+-----------+------+
|Balance at 31 December 2009 | 2.2| 1.9| -| (28.0)|(23.9)|
+------------------------------+-------+-------+-------+-----------+------+
| | | | | | |
+------------------------------+-------+-------+-------+-----------+------+
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2010
+--------------------------------------------+-----+---------+---------+-------+
| | |Unaudited|Unaudited|Audited|
+--------------------------------------------+-----+---------+---------+-------+
| | | 30 Jun | 30 Jun |31 Dec |
+--------------------------------------------+-----+---------+---------+-------+
| | | 2010 | 2009 | 2009 |
+--------------------------------------------+-----+---------+---------+-------+
| |Notes| EURm| EURm| EURm|
+--------------------------------------------+-----+---------+---------+-------+
| | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Net cash from operating activities | 11 | 23.3| 28.9| 51.3|
+--------------------------------------------+-----+---------+---------+-------+
| | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Cash flow from investing activities | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Interest received | | 0.1| 0.3| 0.4|
+--------------------------------------------+-----+---------+---------+-------+
|Proceeds on disposal of property, plant and | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|equipment | | -| 0.1| 0.1|
+--------------------------------------------+-----+---------+---------+-------+
|Payment received on long term receivable | | -| -| 4.3|
+--------------------------------------------+-----+---------+---------+-------+
|Purchases of property, plant and equipment | | (4.5)| (4.1)| (4.6)|
+--------------------------------------------+-----+---------+---------+-------+
|Purchase of intangible assets | | (0.1)| (0.2)| (0.2)|
+--------------------------------------------+-----+---------+---------+-------+
| | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Net cash used in investing activities | | (4.5)| (3.9)| -|
+--------------------------------------------+-----+---------+---------+-------+
| | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Cash flow from financing activities | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Redemption of redeemable shares | | -| (24.6)| (24.6)|
+--------------------------------------------+-----+---------+---------+-------+
|Dividend paid | | (25.0)| -| -|
+--------------------------------------------+-----+---------+---------+-------+
|Repayments of borrowings | | -| (17.5)| (64.7)|
+--------------------------------------------+-----+---------+---------+-------+
|Repayments of obligations under finance | | (0.5)| (0.9)| (1.4)|
|leases | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Proceeds on issue of ordinary share capital | | 3.3| -| -|
+--------------------------------------------+-----+---------+---------+-------+
|New bank loans raised | | -| 18.0| 28.0|
+--------------------------------------------+-----+---------+---------+-------+
|Increase in bank overdrafts | | 1.7| 7.2| -|
+--------------------------------------------+-----+---------+---------+-------+
|New finance leases raised | | 2.5| 0.1| -|
+--------------------------------------------+-----+---------+---------+-------+
| | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Net cash used in financing activities | | (18.0)| (17.7)| (62.7)|
+--------------------------------------------+-----+---------+---------+-------+
| | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Net increase / (decrease) in cash and cash | | 0.8| 7.3| (11.4)|
|equivalents | | | | |
+--------------------------------------------+-----+---------+---------+-------+
| | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Cash and cash equivalents at the beginning | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|of the period | | 17.0| 28.5| 28.5|
+--------------------------------------------+-----+---------+---------+-------+
| | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Effect of foreign exchange rate changes | | (0.3)| (0.4)| (0.1)|
+--------------------------------------------+-----+---------+---------+-------+
| | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Cash and cash equivalents at the end of the | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|period | | | | |
+--------------------------------------------+-----+---------+---------+-------+
| | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Bank balances and cash | | 17.5| 35.4| 17.0|
+--------------------------------------------+-----+---------+---------+-------+
| | | | | |
+--------------------------------------------+-----+---------+---------+-------+
| | | | | |
+--------------------------------------------+-----+---------+---------+-------+
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED 30 JUNE 2010
1. General Information
These condensed financial statements do not comprise the statutory accounts
within the meaning of Section 19 of the Companies (Amendment) Act 1986. The
summary financial statements for the year ended 31 December 2009, as presented
in this Interim Report, represent an abbreviated version of the Group's full
financial statements for that year. Those financial statements contained an
unqualified audit report without reference to any matters of emphasis and have
been filed with the Companies Registration Office in Ireland.
The interim figures included in the condensed financial statements for the six
months ended 30 June 2010 and the comparative amounts for the six months ended
30 June 2009 are unaudited.
2. Accounting policies
The Group Condensed Financial Statements for the six months ended 30 June 2010
have been prepared in accordance with the Transparency (Directive 2004/109/EC)
Regulations 2007, the related Transparency Rules of the Irish Financial Services
Regulatory Authority and with IAS 34 'Interim Financial Reporting' as adopted by
the European Union.
The accounting policies and methods of computation applied in preparing these
condensed financial statements are consistent with those set out in the Group
Annual Report for the financial year ended 31 December 2009, which is available
at www.icg.ie.
The Group did not adopt any new International Financial Reporting Standards
(IFRS) or Interpretations in the period that had a material impact on the Group
Condensed Financial Statements for the half year.
At 30 June 2010, the following Standards and Interpretations have become
effective since our last Annual Report:
IFRS 1 (Amendment) First-time Adoption of International Financial Reporting
Standards (effective for accounting periods beginning on or after 1
January 2010);
IFRS 1 (Revised) First-time Adoption of International Financial Reporting
Standards (effective for accounting periods beginning on or after 1
July 2009);
IFRS 2 (Amendment) Share Based Payments (effective for accounting periods
beginning on or after 1 July 2009 and 1 January 2010);
IFRS 3 (Revised) Business Combinations (effective for accounting periods
beginning on or after 1 July 2009);
IFRS 5 (Amendment) Non-Current Assets Held for Sale and Discontinued
Operations (effective for accounting period beginning on or after 1
July 2009 and 1 January 2010);
IFRS 8 (Amendment) Operating Segments (effective for accounting periods
beginning on or after 1 January 2010);
IAS 1 (Amendment) Presentation of Financial Statements (effective for
accounting periods beginning on or after 1 January 2010);
IAS 7 (Amendment) Statement of Cash Flows (effective for accounting periods
beginning on or after 1 January 2010);
IAS 17 (Amendment) Leases (effective for accounting periods beginning on or
after 1 January 2010);
IAS 27 (Amendment) Consolidated and Separate Financial Statements (effective
for accounting periods beginning on or after 1 July 2009);
IAS 28 (Amendment) Investments in Associates (effective for accounting periods
beginning on or after 1 July 2009);
IAS 31 (Amendment) Interests in Joint Ventures (effective for accounting
periods beginning on or after 1 July 2009);
IAS 36 (Amendment) Impairment of Assets (effective for accounting periods
beginning on or after 1 January 2010);
IAS 38 (Amendment) Intangible Assets (effective for accounting periods
beginning on or after 1 July 2009);
IAS 39 (Amendment) Financial Instruments: Recognition and Measurement
(effective for accounting period beginning on or after 1 July 2009 and
1 January 2010);
IFRIC 17 Distributions of Non-cash Assets to Owners (effective for accounting
periods beginning on or after 1 July 2009); and
IFRIC 18 Transfers of Assets from Customers (effective for accounting periods
beginning on or after 1 July 2009).
There have been no material change in estimates in these interim accounts based
on the estimates that have previously been made in the prior year interim
accounts to 30 June 2009 and the prior year financial statements to 31 December
2009.
3. Segmental information: Analysis by class of business
Under IFRS 8: Operating Segments, the Group has determined that the operating
segments are (i) Ferries and (ii) Container and Terminal.
+-------------------------+-----------------------------+--------------+
| | Unaudited | Audited |
+-------------------------+-----------------------------+--------------+
| | 6 months ended | 12 months |
| | | ended |
+-------------------------+--------------+--------------+--------------+
| | 30 Jun 2010 | 30 Jun 2009 | 31 Dec 2009 |
+-------------------------+-------+------+-------+------+-------+------+
| |Revenue|Profit|Revenue|Profit|Revenue|Profit|
+-------------------------+-------+------+-------+------+-------+------+
| | EURm | EURm | EURm | EURm | EURm | EURm |
+-------------------------+-------+------+-------+------+-------+------+
|Ferries | 68.0| 6.5| 65.5| 3.9| 149.0| 18.1|
+-------------------------+-------+------+-------+------+-------+------+
|Container and Terminal | 55.1| 2.3| 55.0| 3.2| 112.8| 8.4|
+-------------------------+-------+------+-------+------+-------+------+
|Internal Revenue | (0.7)| -| (0.7)| -| (1.3)| -|
+-------------------------+-------+------+-------+------+-------+------+
|Operating Profit | -| 8.8| -| 7.1| -| 26.5|
+-------------------------+-------+------+-------+------+-------+------+
|Net Interest - Ferries | -| (0.4)| -| (1.3)| -| (1.5)|
+-------------------------+-------+------+-------+------+-------+------+
|Net interest - Container | | | | | | |
+-------------------------+-------+------+-------+------+-------+------+
|and Terminal | -| (0.1)| -| -| -| (0.1)|
+-------------------------+-------+------+-------+------+-------+------+
|External Revenue / Profit| 122.4| 8.3| 119.8| 5.8| 260.5| 24.9|
+-------------------------+-------+------+-------+------+-------+------+
Revenue in the Group's Ferries Division is weighted towards the second half of
the year due to patterns of passenger demand.
There has been no material change in the share of total assets / liabilities
between segments from the share disclosed in the prior year financial statements
to 31 December 2009.
4. Redemption of redeemable shares / Dividend
+------------------------------------------+-----------+-----------+-----------+
| | Unaudited | Unaudited | Audited |
+------------------------------------------+-----------+-----------+-----------+
| | 6 months | 6 months | 12 months |
+------------------------------------------+-----------+-----------+-----------+
| | ended | ended | ended |
+------------------------------------------+-----------+-----------+-----------+
| |30 Jun 2010|30 Jun 2009|31 Dec 2009|
+------------------------------------------+-----------+-----------+-----------+
| | EURm| EURm| EURm|
+------------------------------------------+-----------+-----------+-----------+
|Redemption of one redeemable share for | -| 24.6| 24.6|
|100c | | | |
+------------------------------------------+-----------+-----------+-----------+
|Dividend paid of 100c per share | 25.0| -| -|
+------------------------------------------+-----------+-----------+-----------+
| | | | |
+------------------------------------------+-----------+-----------+-----------+
The Board redeemed one Redeemable Share per ICG Unit for a cash consideration of
100 cent per Redeemable Share in May 2009 and April 2008.
In June 2010 the Company paid a dividend of 100 cent per share.
5. Earnings per share - all from continuing operations
+-----------------------------------+-+-----------+-----------+----------------+
| | | Unaudited | Unaudited | Audited |
+-----------------------------------+-+-----------+-----------+----------------+
| | | 6 months | 6 months | 12 months |
+-----------------------------------+-+-----------+-----------+----------------+
| | | ended | ended | ended |
+-----------------------------------+-+-----------+-----------+----------------+
| | |30 Jun 2010|30 Jun 2009| 31 Dec 2009 |
+-----------------------------------+-+-----------+-----------+----------------+
| | | Cent| Cent| Cent|
+-----------------------------------+-+-----------+-----------+----------------+
| | | | | |
+-----------------------------------+-+-----------+-----------+----------------+
|Basic earnings per share | | 33.1| 19.9| 102.4|
+-----------------------------------+-+-----------+-----------+----------------+
|Diluted earnings per share | | 32.9| 19.7| 101.5|
+-----------------------------------+-+-----------+-----------+----------------+
|Adjusted basic earnings per share | | 34.3| 22.3| 107.7|
+-----------------------------------+-+-----------+-----------+----------------+
|Adjusted diluted earnings per share| | 34.1| 22.1| 106.7|
+-----------------------------------+-+-----------+-----------+----------------+
| | | | | |
+-----------------------------------+-+-----------+-----------+----------------+
|The calculation of the basic and diluted earnings per share attributable to |
|the ordinary equity holders of |
+------------------------------------------------------------------------------+
|the parent is based on the following data: |
+-----------------------------------+-+-----------+-----------+----------------+
| | | | | |
+-----------------------------------+-+-----------+-----------+----------------+
|Earnings | | EURm| EURm| EURm|
+-----------------------------------+-+-----------+-----------+----------------+
| | | | | |
+-----------------------------------+-+-----------+-----------+----------------+
|Earnings for the purpose of basic | | | | |
|and diluted | | | | |
+-----------------------------------+-+-----------+-----------+----------------+
|earnings per share - | | | | |
+-----------------------------------+-+-----------+-----------+----------------+
|Profit for the period attributable | | | | |
|to equity holders of | | | | |
+-----------------------------------+-+-----------+-----------+----------------+
|the parent | | 8.2| 4.9| 25.2|
+-----------------------------------+-+-----------+-----------+----------------+
|Earnings for the purpose of | | | | |
|adjusted earnings per | | | | |
+-----------------------------------+-+-----------+-----------+----------------+
|share - | | | | |
+-----------------------------------+-+-----------+-----------+----------------+
|Profit for the period attributable | | | | |
|to equity holders of | | | | |
+-----------------------------------+-+-----------+-----------+----------------+
|the parent | | 8.2| 4.9| 25.2|
+-----------------------------------+-+-----------+-----------+----------------+
|Effect of expected return on | | | | |
|defined benefit pension | | | | |
+-----------------------------------+-+-----------+-----------+----------------+
|scheme assets | | (6.6)| (5.9)| (11.7)|
+-----------------------------------+-+-----------+-----------+----------------+
|Effect of interest on defined | | | | |
|benefit pension | | | | |
+-----------------------------------+-+-----------+-----------+----------------+
|scheme liabilities | | 6.9| 6.5| 13.0|
+-----------------------------------+-+-----------+-----------+----------------+
|Earnings for the purpose of | | | | |
|adjusted earnings per | | | | |
+-----------------------------------+-+-----------+-----------+----------------+
|share | | 8.5| 5.5| 26.5|
+-----------------------------------+-+-----------+-----------+----------------+
| | | | | |
+-----------------------------------+-+-----------+-----------+----------------+
|Number of shares | | '000| '000| '000|
+-----------------------------------+-+-----------+-----------+----------------+
| | | | | |
+-----------------------------------+-+-----------+-----------+----------------+
|Weighted average number of ordinary| | | | |
|shares for | | | | |
+-----------------------------------+-+-----------+-----------+----------------+
|the purpose of basic earnings per | | | | |
|share | | 24,761| 24,617| 24,617|
+-----------------------------------+-+-----------+-----------+----------------+
|Effect of dilutive potential | | | | |
|ordinary shares: Share | | | | |
+-----------------------------------+-+-----------+-----------+----------------+
|options | | 176| 219| 222|
+-----------------------------------+-+-----------+-----------+----------------+
|Weighted average number of ordinary| | | | |
|shares for | | | | |
+-----------------------------------+-+-----------+-----------+----------------+
|the purpose of diluted adjusted | | | | |
|earnings per share | | 24,937| 24,836| 24,839|
+-----------------------------------+-+-----------+-----------+----------------+
The denominator for the purposes of calculating both basic and diluted earnings
per share has been adjusted to reflect shares issued during the period and
excludes treasury shares. The earnings used in both the adjusted basic and
diluted earnings per share have been adjusted to take into account the net
figure for the expected return on defined benefit pension scheme assets and the
interest on defined pension scheme liabilities. Management consider the adjusted
earnings per share calculation to be a better indication of the continuing
underlying performance of the Group.
6. Property, plant and equipment
+--------------------+------------+---------+---------+--------+---------+-----+
| |Assets under|Passenger|Plant and| |Land and | |
+--------------------+------------+---------+---------+--------+---------+-----+
| |construction| ships |equipment|Vehicles|buildings|Total|
+--------------------+------------+---------+---------+--------+---------+-----+
| | | | | | | |
+--------------------+------------+---------+---------+--------+---------+-----+
| | EURm| EURm| EURm| EURm| EURm| EURm|
+--------------------+------------+---------+---------+--------+---------+-----+
|Cost | | | | | | |
+--------------------+------------+---------+---------+--------+---------+-----+
|At 1 January 2010 | 0.1| 338.8| 55.5| 2.4| 25.5|422.3|
+--------------------+------------+---------+---------+--------+---------+-----+
|Additions | -| 1.3| 3.1| -| 0.1| 4.5|
+--------------------+------------+---------+---------+--------+---------+-----+
|Disposals | (0.1)| -| (1.3)| (0.4)| -|(1.8)|
+--------------------+------------+---------+---------+--------+---------+-----+
|Exchange differences| -| 23.4| 0.3| -| -| 23.7|
+--------------------+------------+---------+---------+--------+---------+-----+
|At 30 June 2010 | -| 363.5| 57.6| 2.0| 25.6|448.7|
+--------------------+------------+---------+---------+--------+---------+-----+
| | | | | | | |
+--------------------+------------+---------+---------+--------+---------+-----+
|Accumulated | | | | | | |
|depreciation | | | | | | |
+--------------------+------------+---------+---------+--------+---------+-----+
|At 1 January 2010 | -| 158.2| 32.3| 1.6| 7.0|199.1|
+--------------------+------------+---------+---------+--------+---------+-----+
|Charge for period | -| 9.1| 1.6| 0.2| 0.2| 11.1|
+--------------------+------------+---------+---------+--------+---------+-----+
|Disposals | -| -| (1.3)| (0.3)| -|(1.6)|
+--------------------+------------+---------+---------+--------+---------+-----+
|Exchange differences| -| 13.3| -| -| -| 13.3|
+--------------------+------------+---------+---------+--------+---------+-----+
|At 30 June 2010 | -| 180.6| 32.6| 1.5| 7.2|221.9|
+--------------------+------------+---------+---------+--------+---------+-----+
| | | | | | | |
+--------------------+------------+---------+---------+--------+---------+-----+
|Net book amounts | | | | | | |
+--------------------+------------+---------+---------+--------+---------+-----+
|At 1 January 2010 | 0.1| 180.6| 23.2| 0.8| 18.5|223.2|
+--------------------+------------+---------+---------+--------+---------+-----+
|At 30 June 2010 | -| 182.9| 25.0| 0.5| 18.4|226.8|
+--------------------+------------+---------+---------+--------+---------+-----+
|At 30 June 2009 | 0.1| 193.8| 27.7| 1.2| 16.2|239.0|
+--------------------+------------+---------+---------+--------+---------+-----+
At 30 June 2010 the Group has entered into commitments to the value of EUR0.5
million for the purchase of fixed assets.
7. Intangible Assets
+-----------------------+----------+
| | Software |
+-----------------------+----------+
| | |
+-----------------------+----------+
| | EURm |
+-----------------------+----------+
| Cost | |
+-----------------------+----------+
| At 1 January 2010 | 8.1 |
+-----------------------+----------+
| Additions | 0.1 |
+-----------------------+----------+
| | |
+-----------------------+----------+
| At 30 June 2010 | 8.2 |
+-----------------------+----------+
| | |
+-----------------------+----------+
| | |
+-----------------------+----------+
| Amortisation | |
+-----------------------+----------+
| At 1 January 2010 | 7.0 |
+-----------------------+----------+
| Charge for the period | 0.2 |
+-----------------------+----------+
| | |
+-----------------------+----------+
| At 30 June 2010 | 7.2 |
+-----------------------+----------+
| | |
+-----------------------+----------+
| Carrying amount | |
+-----------------------+----------+
| At 1 January 2010 | 1.1 |
+-----------------------+----------+
| | |
+-----------------------+----------+
| At 30 June 2010 | 1.0 |
+-----------------------+----------+
| | |
+-----------------------+----------+
| At 30 June 2009 | 1.5 |
+-----------------------+----------+
8. Net debt
+-----------------------------+-----+----------+------+------+-------+
| |Cash |Overdrafts|Loans |Leases| Total |
+-----------------------------+-----+----------+------+------+-------+
| | EURm| EURm| EURm| EURm| EURm|
+-----------------------------+-----+----------+------+------+-------+
|At 1 January 2010 | | | | | |
+-----------------------------+-----+----------+------+------+-------+
|Current assets | 17.0| -| -| -| 17.0|
+-----------------------------+-----+----------+------+------+-------+
|Creditors due within one year| -| -|(37.2)| (0.6)| (37.8)|
+-----------------------------+-----+----------+------+------+-------+
|Creditors due after one year | -| -| -| (0.9)| (0.9)|
+-----------------------------+-----+----------+------+------+-------+
| | 17.0| -|(37.2)| (1.5)| (21.7)|
+-----------------------------+-----+----------+------+------+-------+
| | | | | | |
+-----------------------------+-----+----------+------+------+-------+
|Cash flow | 0.8| (1.7)| -| -| (0.9)|
+-----------------------------+-----+----------+------+------+-------+
|Foreign exchange rate changes|(0.3)| -| (2.0)| -| (2.3)|
+-----------------------------+-----+----------+------+------+-------+
|Drawdown | -| -| -| (2.5)| (2.5)|
+-----------------------------+-----+----------+------+------+-------+
|Repayment | -| -| -| 0.5| 0.5|
+-----------------------------+-----+----------+------+------+-------+
| | 0.5| (1.7)| (2.0)| (2.0)| (5.2)|
+-----------------------------+-----+----------+------+------+-------+
| | | | | | |
+-----------------------------+-----+----------+------+------+-------+
|At 30 June 2010 | | | | | |
+-----------------------------+-----+----------+------+------+-------+
|Current assets | 17.5| -| -| -| 17.5|
+-----------------------------+-----+----------+------+------+-------+
|Creditors due within one year| -| (1.7)|(39.2)| (0.8)| (41.7)|
+-----------------------------+-----+----------+------+------+-------+
|Creditors due after one year | -| -| -| (2.7)| (2.7)|
+-----------------------------+-----+----------+------+------+-------+
| | 17.5| (1.7)|(39.2)| (3.5)| (26.9)|
+-----------------------------+-----+----------+------+------+-------+
| | | | | | |
+-----------------------------+-----+----------+------+------+-------+
| | | | | | |
+-----------------------------+-----+----------+------+------+-------+
|At 30 June 2009 | | | | | |
+-----------------------------+-----+----------+------+------+-------+
|Current assets | 35.4| -| -| -| 35.4|
+-----------------------------+-----+----------+------+------+-------+
|Creditors due within one year| -| (7.2)| (9.2)| (1.0)| (17.4)|
+-----------------------------+-----+----------+------+------+-------+
|Creditors due after one year | -| -|(65.4)| (1.1)| (66.5)|
+-----------------------------+-----+----------+------+------+-------+
| | 35.4| (7.2)|(74.6)| (2.1)| (48.5)|
+-----------------------------+-----+----------+------+------+-------+
| | | | | | |
+-----------------------------+-----+----------+------+------+-------+
The loan drawdown and repayments have been made under the Group's revolving loan
facilities.
9. Tax
Corporation tax for the interim period is estimated based on the best estimates
of the weighted average annual corporation tax rate expected to apply to each
taxable entity for the full financial year. The resultant average Group rate for
the current year is expected to be higher from the effective tax rate used for
the year ended 31 December 2009 due to the jurisdictions in which the taxable
profits arise.
The Company and subsidiaries who are within the EU approved Tonnage Tax
jurisdictions, have elected to be taxed under the tonnage tax method. Under the
tonnage tax method, taxable profit on eligible activities is calculated on a
specified notional profit per day related to the tonnage of the ships utilised.
10. Retirement Benefit Schemes
Retirement benefit scheme valuations have been updated at the half year. Scheme
assets have been valued as per investment managers valuations at 30 June 2010.
In consultation with the actuary to the principal group defined benefit pension
schemes, the discount rate used in relation to the pension scheme liabilities
has been updated to 5.2% for Euro liabilities (31 December 2009 5.6%) and to
5.3% for Sterling liabilities (31 December 2009 5.7%). All other assumptions are
as at 31 December 2009.
+---------------------------+--------------+--------------+---------------+
| | Unaudited | Unaudited | Audited |
+---------------------------+--------------+--------------+---------------+
| |6 months ended|6 months ended|12 months ended|
+---------------------------+--------------+--------------+---------------+
| | 30 Jun 2010 | 30 Jun 2009 | 31 Dec 2009 |
+---------------------------+--------------+--------------+---------------+
| | EURm| EURm| EURm|
+---------------------------+--------------+--------------+---------------+
| | | | |
+---------------------------+--------------+--------------+---------------+
|Opening deficit | (27.2)| (24.7)| (24.7)|
+---------------------------+--------------+--------------+---------------+
|Current service cost | (0.8)| (1.0)| (1.5)|
+---------------------------+--------------+--------------+---------------+
|Employer contributions paid| 1.9| 1.8| 7.2|
+---------------------------+--------------+--------------+---------------+
|Other finance expense | (0.3)| (0.6)| (1.3)|
+---------------------------+--------------+--------------+---------------+
|Actuarial loss | (21.9)| (4.8)| (6.0)|
+---------------------------+--------------+--------------+---------------+
|Other | 2.5| (0.1)| (0.9)|
+---------------------------+--------------+--------------+---------------+
|Net deficit | (45.8)| (29.4)| (27.2)|
+---------------------------+--------------+--------------+---------------+
| | | | |
+---------------------------+--------------+--------------+---------------+
|Schemes in surplus | 1.4| 3.2| 2.4|
+---------------------------+--------------+--------------+---------------+
|Schemes in deficit | (47.2)| (32.6)| (29.6)|
+---------------------------+--------------+--------------+---------------+
|Net deficit | (45.8)| (29.4)| (27.2)|
+---------------------------+--------------+--------------+---------------+
11. Net cash from operating activities
+--------------------------------------------+-----+---------+---------+-------+
| | |Unaudited|Unaudited|Audited|
+--------------------------------------------+-----+---------+---------+-------+
| | | 30 Jun | 30 Jun |31 Dec |
+--------------------------------------------+-----+---------+---------+-------+
| | | 2010 | 2009 | 2009 |
+--------------------------------------------+-----+---------+---------+-------+
| |Notes| EURm| EURm| EURm|
+--------------------------------------------+-----+---------+---------+-------+
|Operating activities | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Profit for the period | | 8.2| 4.9| 25.2|
+--------------------------------------------+-----+---------+---------+-------+
| | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Adjustments for: | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Finance costs (net) | | 0.5| 1.3| 1.6|
+--------------------------------------------+-----+---------+---------+-------+
|Income tax expense / (credit) | | 0.1| 0.9| (0.3)|
+--------------------------------------------+-----+---------+---------+-------+
|Retirement benefit obligation - service cost| | 0.8| 1.0| 1.5|
+--------------------------------------------+-----+---------+---------+-------+
|Retirement benefit obligation - payments | | (1.9)| (1.8)| (7.2)|
+--------------------------------------------+-----+---------+---------+-------+
|Retirement benefit obligation - non cash | | (2.2)| -| -|
|items | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Depreciation of property, plant and | | 11.1| 11.3| 23.4|
|equipment | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Amortisation of intangible assets | | 0.2| 0.5| 0.9|
+--------------------------------------------+-----+---------+---------+-------+
|Amortisation of deferred income | | (0.1)| (0.1)| (0.1)|
+--------------------------------------------+-----+---------+---------+-------+
|Share-based payment expense | | 0.1| 0.2| 0.4|
+--------------------------------------------+-----+---------+---------+-------+
|Gain on disposal of property, plant and | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|equipment | | -| (0.1)| (0.1)|
+--------------------------------------------+-----+---------+---------+-------+
|Decrease in other provisions | | -| -| 0.4|
+--------------------------------------------+-----+---------+---------+-------+
| | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Operating cash flow before movements in | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|working capital | | 16.8| 18.1| 45.7|
+--------------------------------------------+-----+---------+---------+-------+
| | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Increase in inventories | | (0.7)| (0.1)| (1.2)|
+--------------------------------------------+-----+---------+---------+-------+
|(Increase) / decrease in receivables | | (3.9)| 3.8| 9.9|
+--------------------------------------------+-----+---------+---------+-------+
|Increase / (decrease) in payables | | 11.4| 8.8| (1.0)|
+--------------------------------------------+-----+---------+---------+-------+
| | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Cash generated from operations | | 23.6| 30.6| 53.4|
+--------------------------------------------+-----+---------+---------+-------+
| | | | | |
+--------------------------------------------+-----+---------+---------+-------+
|Income taxes paid | | (0.1)| (0.7)| (0.1)|
+--------------------------------------------+-----+---------+---------+-------+
|Interest paid | | (0.2)| (1.0)| (2.0)|
+--------------------------------------------+-----+---------+---------+-------+
|Net cash from operating activities | | 23.3| 28.9| 51.3|
+--------------------------------------------+-----+---------+---------+-------+
At 30 June 2010 and 2009 the increase in payables is due to the seasonality of
the business, giving rise to an increase in deferred revenue, as at 30 June
2010 and 2009.
12. Related party transactions
Transactions between the company and its subsidiaries, which are related
parties, have been eliminated on consolidation.
During the six months ended 30 June 2010 there were no material transactions or
balances between Irish Continental Group plc and its key management personnel or
members of their close family, other than in respect of remuneration.
13. Contingent Assets / Liabilities
There have been no material changes in contingent assets or liabilities as
reported in the Group's financial statement for the year ended 31 December 2009.
14. Impairment
As the Group does not have assets which are required to be tested annually for
impairment, no impairment review is necessitated.
In relation to other assets, the Group assessed those assets to determine if
there was any indications of impairment. No internal or external indications of
impairment were identified and consequently no impairment review was performed.
15. Composition of the Entity
There have been no changes in the composition of the entity during the period
ended 30 June 2010.
16. Subsequent Events
The Group entered into a Revolving Credit Facility Agreement in August 2010
which provides committed bank facilities amounting to EUR60.0 million, with an
expiry date of August 2013. The Group also entered into an overdraft facility
amounting to EUR6.0 million, subject to annual review.
There were no other material subsequent events to report since the period ended
30 June 2010.
17. Board Approval
This interim report was approved by the Board of Directors of Irish Continental
Group plc on 26(th) August 2010.
[HUG#1440829]
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Irish Continental Group plc via Thomson Reuters ONE
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